Consolidated net revenues for the second quarter of 2015 amounted to SEK 1,476 M
(1,301).
• Operating earnings (EBIT) amounted to SEK 448 M (372). Operating earnings
include revaluations of purchased debt portfolios amounting to SEK 45 M (23).
The operating margin excluding revaluations was 28 percent (27).
• Net earnings for the quarter amounted to SEK 324 M (252) and earnings per
share were SEK 4.38 (3.23).
• Cash flow from operating activities amounted to SEK 739 M (570).
• The carrying amount of purchased debt has increased by 7 percent compared with
the year-earlier period. Investments in purchased debt for the quarter amounted
to SEK 509 M (574).
Comment by President and CEO Lars Wollung
Intrum Justitia continued to perform well during the second quarter of 2015,
with good earnings growth both for Financial Services and Credit Management
Services. Compared with the year-earlier period, the Group’s revenues for the
quarter rose by 13 percent, of which organic growth totaled 5 percent. Operating
earnings saw an improvement of 11 percent, adjusted for currency effects and
revaluations of portfolios.
In the second quarter, for the first time, we achieved all of the financial
targets we announced two years ago. Growth in earnings per share amounted to 37
percent over the past twelvemonth period, which is well above our target of a 10
-percent increase. The return on purchased debt was 24 percent, exceeding our
target of 15 percent. Finally, we also achieved the lower interval for our
capital structure, with our net debt in relation to operating earnings excluding
depreciation and amortization amounting to 2.0.
All three units in our regions are displaying an improvement in operating
earnings excluding revaluations and currency effects. Developments have been
particularly positive in Central Europe, where a number of operational
improvement initiatives have resulted in improved collection and thereby
increased profitability within Purchased Debt.
In our service lines, Financial Services has seen a particularly positive trend
in the second quarter. The carrying amount of purchased debt rose by 7 percent
compared with the yearearlier period, owing to the increase in investment
levels in recent years. Collection on our portfolios performed well in the
second quarter, generating an improvement in the return compared with the year
-earlier period. The level of investment totaled SEK 509 M for the second
quarter, which is 11 percent less than in the same period last year. As with
previous quarters, we are seeing a good supply in several countries, but we are
also experiencing significant price pressure.
Our Credit Management service line displayed positive growth in earnings in the
second quarter. Acquired units continue to perform well. Our ambition ahead of
the coming year is to up the pace of acquisition of small and medium-sized
credit management companies, where we see good potential for value creation
primarily with regard to cost synergies.
Intrum Justitia has enjoyed excellent growth over the past few years. The
foundation for this is our focus and ability to generate value for our
customers. Through a combination of credit management services and financial
solutions we are able to strengthen our customers’ competitive edge by improving
cash flow and allowing them to concentrate on their core operations. For the
coming year we are determined to continue creating significant value for our
customers, thereby laying the ground for persistent profitable growth for Intrum
Justitia.
Presentation of the Interim Report
This interim report and presentation material are available at
www.intrum.com/Investor (http://www.intrum.com/Investorrelations) relations.
President & CEO Lars Wollung and Chief Financial Officer Erik Forsberg will
comment on the report at a teleconference today, starting at 9:00 a.m. CET. The
presentation can be followed at www.intrum.com and/or www.financialhearings.com.
To participate by phone, call +46 (0)8 566 426 65 (SE) or +44 (0)20 342 814 13
(UK).
For further information, please contact
Lars Wollung, President & CEO Intrum Justitia AB (publ), tel: +46 (0)8 546 102
02
Erik Forsberg, Chief Financial Officer, tel: +46 (0)8 546 102 02
Intrum Justitia is Europe’s leading Credit Management Services (CMS) group,
offering comprehensive services, including purchase of receivables, designed to
measurably improve clients’ cash flows and long-term profitability. Founded in
1923, Intrum Justitia has some 3,800 employees in 20 markets. Consolidated
revenues amounted to about SEK 5.2 billion in 2014. Intrum Justitia AB is listed
on Nasdaq Stockholm since 2002. For further information, please visit
www.intrum.com
